The Analytical Overview of the Main Currency Pairs on 2018.05.21

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.17941

Open: 1.17671

% chg. over the last day: -0.14

Day’s range: 1.17225 – 1.17301

52 wk range: 1.0571 – 1.2557

The EUR/USD currency pair continues to show negative dynamics. Over the past week, the drop in quotes exceeded 200 points. Euro is under pressure due to political tension in Italy. The US government bonds yield growth supports the demand for the US currency. At the moment, the local support and resistance levels are: 1.17150 and 1.17500, respectively. We recommend opening positions from these marks.

The news feed on the US economy and the Eurozone is calm.

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone and below the signal line, which signals to sell EUR/USD.

Stochastic Oscillator is located in the oversold zone, the %K line is below the %D line, which gives a weak signal to sell EUR/USD.

Trading recommendations

Support levels: 1.17150, 1.16700

Resistance levels: 1.17500, 1.18000, 1.18500

If the price fixes below the support level of 1.17150, further decrease of the EUR/USD currency pair is expected. The target movement level is 1.16700-1.16500.

Alternative option. If the price fixes above 1.17500, it is necessary to consider purchases of EUR/USD. The movement is tending potentially to 1.18000-1.18200.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.35147

Open: 1.34599

% chg. over the last day: -0.32

Day’s range: 1.34103 – 1.34210

52 wk range: 1.2361 – 1.4345

There are aggressive sales on the GBP/USD currency pair. During Friday's and today's trading sessions, the decline in quotes counted to 100 points. The British pound is under pressure due to resumed fears concerning Brexit. At the moment, the local support and resistance levels are 1.33900 and 1.34400, respectively. We recommend opening positions from these marks.

Today, the news feed on the UK economy is calm.

The price has fixed below 50 MA and 200 MA, which indicates the power of sellers.

The MACD histogram is in the negative zone, below the signal line, which gives a strong signal to sell GBP/USD.

Stochastic Oscillator is located in the oversold zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations

Support levels: 1.33900, 1.33600

Resistance levels: 1.34400, 1.34800, 1.35200

If the price fixes below the support level of 1.33900, further decrease of the GBP/USD quotes is expected. The movement is tending potentially to 1.33600-1.33400.

An alternative may be the GBP/USD currency pair correction to the level of 1.34500-1.34800.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28010

Open: 1.28708

% chg. over the last day: +0.59

Day’s range: 1.28707 – 1.28757

52 wk range: 1.2059 – 1.3795

On Friday, the bullish sentiment was observed on the USD/CAD currency pair. The growth of quotes exceeded 70 points. The Canadian dollar weakened against the US currency due to weak economic reports on inflation and retail sales. At the moment, the trading instrument is in a sideways trend. The key support and resistance levels are: 1.28600 and 1.29000, respectively. The positions should be opened from these marks.

Today, economic reports from Canada are not expected to be published. Financial markets of Canada are closed due to the holiday.

Indicators point to the power of buyers: the price has fixed above 50 MA and 200 MA.

The MACD histogram is in the positive zone, but below the signal line, which gives a weak signal to buy USD/CAD.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which indicates the USD/CAD quotes growth.

Trading recommendations

Support levels: 1.28600, 1.28200, 1.27800

Resistance levels: 1.29000, 1.29400, 1.29800

If the price fixes above the round level of 1.29000, further growth of the USD/CAD quotes is expected. The movement is tending potentially to 1.29400-1.29600.

Alternative option. If the price fixes below the support level of 1.28600, we recommend considering sales of USD/CAD. The target movement level is 1.28200-1.28000.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 110.760

Open: 110.871

% chg. over the last day: +0.13

Day’s range: 111.284 – 111.396

52 wk range: 104.56 – 114.74

The bullish sentiment is observed on the USD/JPY currency pair. Demand for the US currency is at a high level. The trading instrument has the potential for further growth. At the moment, the USD/JPY quotes are testing local resistance of 111.350. The round level of 111.000 is already a "mirror" support. The positions should be opened from these marks.

Today, during the Asian trading session, ambiguous data on trade balance of Japan were published.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is in the positive zone, above the signal line, which gives a strong signal to buy USD/JPY.

Stochastic Oscillator is located in the overbought zone, the %K line is crossing the %D line. There are no accurate signals.

Trading recommendations

Support levels: 111.000, 110.700, 110.300

Resistance levels: 111.350, 111.800

If the price fixes above the local resistance of 111.350, further growth of the USD/JPY currency pair is expected. The movement is tending potentially to 111.800-112.000.

Alternative option. If the price fixes below the round level of 111.000, correction movement is expected. The movement is tending potentially to 110.700-110.500.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.